Dangote refinery raises $2.5bn in oversubscribed private placement

Dangote Petroleum Refinery and Petrochemicals (DPRP) has successfully raised approximately $2.5 billion through a private placement, in what is being described as Africa’s largest publicly disclosed primary equity private placement by value.

The company disclosed on Thursday that the equity offering was oversubscribed by 3.7 times the initial offer size, reflecting strong investor confidence in the refinery’s long-term growth prospects.

According to the refinery, the transaction marks its first equity capital raise involving external investors outside its existing shareholder base, representing a significant milestone in its long-term funding strategy and the continued development of African capital markets.

The proceeds from the fundraising will be deployed to support the ongoing expansion of the refinery and petrochemical complex, strengthen the company’s capital structure, and provide additional financial flexibility for future growth initiatives.

The private placement attracted a broad mix of African and international institutional investors, sovereign-related investment vehicles, development finance institutions, strategic partners, as well as institutional and individual investors.

Among the key investors were Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank).

Commenting on the successful capital raise, President and Chief Executive Officer of Dangote Industries Limited and Chairman of Dangote Refinery, Aliko Dangote, described the transaction as a strategic move to broaden and institutionalise the company’s shareholder base while complementing internal cash generation and existing external financing.

He said the additional capital would reinforce the company’s commitment to expanding domestic refining and petrochemical capacity, reducing Africa’s dependence on imported refined petroleum products and strengthening the continent’s energy security.

Also speaking, Managing Director and Chief Executive Officer of Dangote Refinery, David Bird, attributed the overwhelming investor interest to confidence in the company’s operational performance, execution capability and leadership.

He noted that the successful completion of the private placement positions the refinery to continue implementing its long-term growth strategy while enhancing Africa’s energy security through world-class refining and petrochemical capacity.

Bird added that the strong demand from investors further validates the refinery’s strategic direction and provides a stronger platform for sustainable long-term value creation.

He also acknowledged the contributions of the company’s financial and professional advisers in ensuring the successful execution of the landmark transaction.